The government of Mozambique will “trigger funding mechanisms for the re-capitalisation of Mozambique Cellular (Mcel), the mobile phone company that is currently experiencing some financial difficulties,” Mozambican daily newspaper Notícias reported.
The newspaper also reported the company, owned by the Mozambican state through the Telecomunicações de Moçambique and state stake-holding company Igepe, would present a short-term business plan and an investment programme with several options for ending the crisis and re-establish leadership of the mobile market in the country.
At the end of a visit to the company by Prime Minister Carlos Agostinho do Rosário, the Minister of Transport and Communications, Carlos Mesquita said that although the company’s situation “requires more careful treatment,” Mcel has managed to honour all its financial obligations, albeit with some difficulties.
“We were told that it is necessary for the shareholder, in this case the state, to provide or arrange financing, through the various models available to capitalise so that it can continue to invest,” noted Mesquita.
Mcel’s financial situation had led to some speculation that the government was thinking of selling the state share in the company, which was again denied by the Minister of Transport and Communications, who gave assurances that the disposal of shares will be an option of last resort.
Mozambique currently has three mobile telecommunications operators, Mcel, Vodacom Moçambique and Movitel. (macauhub/MZ)